Changing from a business to self employed
Hi,
We are closing down the Ltd company, and I'm just selling off the final stock under my own name (we have purchased the remaining stock from the company). However, Amazon still has our account registered as a business and I can't edit the bank account (it says the account needs to be in the name of my business)
I've asked SS, but I'm not holding out much hope for a good solution - so I thought I'd ask here to see if anyone has any ideas :)
Thanks
Andy
11 replies
Seller_ZVAz3d5lZuGid
You are still a business even if you are self-employed, so it is just a case of not Ltd anymore. You're right about SS - they will be useless I guess ! Others who are or have been Ltd, may be able to advise better than me.
Seller_SnuCWrfrCaFmh
It's easy enough to do if you know how.
Go to...
Settings > Account info > Business information > Transfer account
I've done it before (Ltd to Sole Trader) and it's pretty straight forward.
Be prepared to have to re verify everything as on Amazons side it is transferring to a new entity even though in reality it is yourself, this can take some time, it was 3 days when I did it but I have seen others take much longer.
Make sure you fill in the new details EXACTLY as they appear on your supporting documents to make the process as smooth as possible and reduce the chances of being asked for further things.
I hope this helps
Seller_s0q4eT0IHyb5N
Thanks @MiTrad . My biggest concern - what bank accounts does it require? As a self-employed entity, I just have bank accounts in my name. For the business side, obviously, its always been in the company's name. Will they accept non-business bank accounts?
Seller_ZVAz3d5lZuGid
I'll be honest, I would always have a separate bank account for the business (even if Self Employed) as when it comes to doing your accounts, it is a pain having to separate personal transactions from business ones. (I have a separate personal account for business, not an actual Business account, and it has been accepted for the 18 years I have been on Amazon !!).
Seller_s0q4eT0IHyb5N
Sorry, I do have a separate bank account for the business - but it's just not an actual "business" account (i.e, where its in the name of the business). Its just an account with my name, but kept separate for business income/expenses . I certainly did learn the hard way about having seperate accounts 20+ years ago when I set up my company =)
Seller_ZVAz3d5lZuGid
Should be absolutely fine then ! - as I said, mine isn't a 'Business' account either. :)
Seller_wcAKuyvClUyVX
I have just gone through the process and Have come out the other side and it was a nightmare. Partly of my own making as I first changed the bank account.
In hindsight this is what I should have done to make this easier. First you have to have a zero balance in SC. This means putting all orders on hold until you have been paid. Then do as the person above said. Request a transfer of the legal entity. The complication for me was that I didn't have any of the documents that they needed for verification. I was over the moon till I realised that I didn't have any of these documents as they were all in the name of my limited company and were not accepted. So I had to request the letter from HMRC which confirmed my UTR. That took two weeks to come, so if I were you I would request that now while you are waiting for your disbursements to become nil.
One I had that letter the next fly in the ointment was that the bank account registered on Amazon wasnt the new one, so once I updated that the verification was done very promptly.
My selling privileges were removed and I had no business for almost two months. I almost gave up but I persevered and believe me it took its toll.
My tip, dont change the bank account until the last thing.
I would love to get your advice on how you valued the stock you bought off the limited company
Seller_s0q4eT0IHyb5N
Thanks. I have given up already. Its been a farce. My account was locked out, and I couldn't do anything. It removed all my bank account (even without me doing it). I just got 10+ emails saying the bank accounts had been removed. And one email saying I was trying to change the entity... and to do that, they had closed me account from selling!!! Honestly, I've had enough. I'm just getting the remaining stock sent back to me now, and then I'm closing the account down. 2015 I set it all up, and while its has its ups and downs - this has to be the most stressful!
> I would love to get your advice on how you valued the stock you bought off the limited company
My accountant said what you do is make an invoice for a "fair price" for the units (over cost price, but not full retail price). Then you buy the stock from the company, to take the stock levels down to 0. Its a big investment for me having to purchase £2k of stock out of my savings, but it means I can close the Ltd company down and save myself £1k in annual accounting fees all the other stuff that goes with it)
Julia_Amzn
Hello @Seller_s0q4eT0IHyb5N, thank you for reaching out. I will transfer your thread to the Account Health category, where my colleagues will provide further support.
All the best!
Julia.
